Law Offices of Charles A. Maglieri
Free Consultations

Connecticut Bankruptcy Law Blog

What is the Relief Refinance Program?

If you are a Connecticut homeowner facing difficult financial times, you may be able to qualify for the new Relief Refinance Program to avoid foreclosure of your home. As TSP Mortgage explains, the Relief Refinance Program went into effect on Nov. 1, 2018, and replaces the now defunct Home Affordable Refinance Program, popularly known as HARP, that went into effect in 2009 after the housing bubble burst in 2008 and existed through 2018.

Essentially, the Relief Refinance Program represents the new and improved version of HARP and offers you many advantages, including the following:

  • You can refinance your mortgage so as to get better terms.
  • You have no loan-to-value restrictions on your new fixed rate loan.
  • The annual adjustable-rate mortgage percentage caps out at 105% of the loan-to-value.
  • You obtain your new mortgage loan through a private mortgage insurance transfer.
  • You have minimal paperwork requirements.

How can you recognize a foreclosure rescue scam?

When you are having severe financial difficulties, possibly including the threat of foreclosure, in Connecticut, it can feel like you are drowning. An offer of help paying off your debts and preventing foreclosure may seem like a lifeline. Unfortunately, foreclosure rescue scams are prevalent, and those who run them are attempting to take advantage of your panic and desperation in order to make money off you. If you fall for one of these scams, you may end up in even worse financial trouble than you were in to begin with. 

People who run foreclosure rescue scams are adept at making the offer sound like the solution to all your problems, and it can be easy to fall for their tricks. However, if you keep a cool head and look out for warning signs that the deal may be too good to be true, you can avoid becoming a victim. 

The abusive tactics debt collectors may use

Connecticut residents who have fallen into debt may find themselves being pestered by debt collectors or collection agencies. While in many cases these instances are just annoying, they can be potentially harmful and frightening if the collector uses tactics that are considered illegal.

FindLaw starts by taking a look at the Fair Debt Collection Practices Act (FDCPA), started solely to protect people from aggressive, unlawful debt collection tactics. It prohibits debt collectors from doing any of the following:

  • Continuous or repeated calling
  • Not ceasing upon request
  • Calling or visiting at all hours
  • Deceiving people or misrepresenting themselves or information
  • Public shame such as publishing the customer's name on a "bad debt" list
  • Reporting false information or threatening to do so
  • Threatening arrest or using profane language

Can credit cards help to rebuild credit following bankruptcy?

Filing for bankruptcy can have a major impact on your credit score, as well as your ability to purchase a home, take out a loan or make financial transactions in the future. There are ways, however, that you can rebuild your credit once your bankruptcy has been discharged. While extensive credit card expenses may have contributed to your need to file for bankruptcy in the first place, certain credit cards may help you rebuild your credit and finally get back on track. Some credit cards, on the other hand, may cause you to accumulate even more debt even after your bankruptcy is discharged.

Subprime credit lending agencies offer credit to people who may not be able to obtain credit through traditional means. In order to offset the risk of lending to people with low credit scores, these agencies issue high interest rates, as well as additional annual fees and maintenance fees. If not careful, you could end up under water with a host of credit card debt due to these high interest rates and fees.

What information is required when you file for Chapter 13?

Since you have discovered that your growing debt is creating extreme difficulties in your ability to repay your lenders on time, you have considered filing for bankruptcy in Connecticut. With your decision made, you are now working to file your claim and hear the outcome of your request. Understanding the information that is required for your claim to be considered is important to save yourself time by completing the documentation correctly from the start.

According to the United States Courts, you will need to make a comprehensive list of all of the property that you own. You will also be required to detail how much income you are receiving including where it comes from, how frequently you receive it and how much each payment is for. Along with this, you will need to disclose an approximated list of your expenses and where your money goes once you receive compensation of any kind. A complete list of the entities that you owe money to, including for how much and what for, will be required to complete your claim. 

How do people view their personal debt?

If you are one of the numerous Connecticut residents struggling with rising credit card balances and other debt, you may have quite negative feelings about the amount of debt you have accumulated, often out of necessity. Although most people keep their financial situations private and refuse to share their fears and concerns with others, it may help you to know what a recent survey of Americans revealed about the feelings they have with regard to their personal debt.

As reports, a full 80 percent of those surveyed said that they have a minimum of one type of debt, often a home mortgage or medical debt. Nevertheless, the majority of them do not feel that they have too much debt. As a matter of fact, the figures show the following:

  • Forty percent say they have too much debt, with 47 percent of these people fallng within the 35-54 age bracket.
  • Forty-three percent of those saying they make less than $25,000 each year believe they have too much debt.
  • Only 34 percent of those saying they make over $75,000 each year believe they have too much debt.
  • Educational level has little or no bearing on a person’s feelings about debt. Thirty-nine percent of those with a high school education believe they have too much debt, while 38 percent of those with a college degree feel the same.
  • Not surprisingly, only 18 percent of the people who said they believe they have too much debt feel happy about it.

How can you strip away a second mortgage?

There are several reasons homeowners take out a second mortgage on their homes, including but not limited to skirting homeowners' insurance requirements, utilizing the equity in one's home or borrowing against the home. Whatever your reason for pulling out a second mortgage on your Connecticut home, do not feel bad if your second mortgage has put you in over your head debt-wise. Also, know that relief options are available to you that do not involve foreclosing on your home.

According to SF Gate, you may be able to strip off your second mortgage via bankruptcy provided your home does not have equity in it and that you meet eligibility requirements. This is because bankruptcy courts, on occasion, treat second mortgages as unsecured loans. If you plan to go this route, there are a few steps you need to take before obtaining financial relief.

Hundreds of Sears stores set to close in Chapter 11 bankruptcy

The modern age of internet shopping and big box stores hasn’t been good for many companies, even stores that have been successful for decades. Competition can be good when it keeps prices down for consumers, but too much of it can make it hard for some stores to compete. Consequently, some have no choice but to file for Chapter 11 bankruptcy or close their doors. Many residents of Connecticut and elsewhere may consider the closing of numerous iconic stores the end of an era.

The national retail giant Sears is not exempt from competitors luring away enough of its customers to have a significant impact. According to News 12 Connecticut, the Sears company, which has been in business for 130 years, filed for Chapter 11 bankruptcy last October. Spokespeople have cited numerous reasons the retailer is experiencing difficulties, particularly competition from other local businesses and online shopping. The Great Recession of several years ago is also said to have contributed to the company’s lingering difficulties. After 182 Sears stores nationwide were set to close, an additional 80 were scheduled to close their doors by March.

How do I get ready to file for bankruptcy?

As we discuss in numerous posts in this blog, you may want to explore other options before you file for bankruptcy or go through with a foreclosure. However, you and other Connecticut residents may decide that a personal bankruptcy is the best route to take, after all. You may not be able to get through insurmountable financial challenges on your own, or you may just need the fresh start that a Chapter 7 bankruptcy offers.

Regardless of your reasons for following through with a bankruptcy, you will need to understand that you don’t just walk into a lawyer’s office, fill out some papers and walk away with that clean slate. As NerdWallet explains, there is a process to go through when filing for either Chapter 7 or Chapter 13 bankruptcy, and it may be lengthy. However, waiting a few weeks or months for your bankruptcy to be approved may be far preferable to struggling with financial challenges indefinitely.

How are zombies real in the bankruptcy world?

You might think that zombies are merely a product of Hollywood and books. While this is true when it pertains to the undead coming for your brains, a different type of zombie can threaten Connecticut homeowners who are facing a foreclosure. The term for a home that is languishing in the foreclosure process is a zombie foreclosure.

The name sounds amusing, but zombie foreclosures are anything but funny. As CNBC describes, a foreclosed home typically becomes zombified when homeowners feel they have no other option than to walk away from their house and abandon their mortgages. Rather than complete the foreclosure and put the house back on the market, many banks would allow the home to sit without selling it to new owners, depreciating in value and lowering the values of other homes in the neighborhood. Fortunately for you and others, the practice of allowing abandoned homes to become zombies occurs less often than it did just after the housing market crash.

Discuss Your Case With A
Respected Bankruptcy Attorney

Contact my office to discuss your debt relief needs directly with me as your lawyer. I offer a free initial consultation to all new clients where you can learn more about your legal options and what I can do to help you. I am available during regular business hours and by appointment at other times. You can reach me by phone at 860-242-0574 and 860-952-3674 or via email.

My law firm is a debt relief agency as so designated by Congress in the year 2005. I help people file for bankruptcy relief under Title 11 of the United States Code, known as the Bankruptcy Code.

Schedule A Free Consultation

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Email Us For A Response

Bloomfield Office
34 Jerome Avenue
Suite 316
Bloomfield, CT 06002

Phone: 860-242-0574
Fax: 860-243-0106
Map & Directions

Marlborough Office
9 Austin Road
Suite 201
Marlborough, Connecticut 06447

Phone: 860-952-3674
Fax: 860-243-0106
Map & Directions